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Saturday, December 16, 2000

Cincinnati empowerment zones to get $10M




By Derrick DePledge
Enquirer Washington Bureau

        WASHINGTON - The Cincinnati Empowerment Corp. should get about $10 million in federal money this fiscal year for economic improvement in nine low- income neighborhoods.

        The nation's 31 empowerment zones were each supposed to receive $10 million a year for 10 years, but Republicans in Congress have restricted spending in 20 of the zones, including Cincinnati's, to about $3 million a year.

        Congress had granted $5 million in empowerment-zone funding earlier this year, then added another $5 million Friday in a catch-all spending package approved before lawmakers ad- journed. President Clinton is expected to sign the bill.

        The Cincinnati empowerment zone, created in January 1999, has struggled with administrative and philosophical issues. City Manager John Shirey said in August that part of the reason for the disarray was financial. The zone covers nine neighborhoods: Avondale, Over-the-Rhine, Walnut Hills, Clifton-Fairview, Corryville, Evanston, Mount Auburn, Queensgate and the West End.

        In both the empowerment zones and renewal communities, businesses would be eligible for similar tax breaks, wage credits and other incentives to revive low-income neighborhoods.

        Several other proposals by Tristate lawmakers were scrapped or put off until next year as Congress completed an extraordinary session.

        For example:

        • Sen. Jim Bunning, R-Ky., could not attract the support necessary to award the Congressional Gold Medal to Muhammad Ali.

        • The House, with the support of several Ohio lawmakers, agreed to extend a moratorium on Internet taxes for five years, but the Senate never went along. The existing moratorium expires next October.

        • Rep. Rob Portman's attempt to replace the federal tax code by 2004 was approved by the House but died in the Senate. The Terrace Park Republican said he might make a similar proposal next session.

        • Rep. Steve Chabot, R-Ohio, helped persuade the House to permit television cameras in federal courtrooms, but the suggestion never reached the Senate for a vote.

        • The House approved an idea by Cincinnati accountant John Michel to extend the deadline for contributions to education savings accounts from the end of December until April 15. The Senate never acted.

        • A proposal by Rep. Ken Lucas, D-Ky., to provide a prescription drug benefit for military retirees stalled in the House, but a similar idea was added to the defense spending bill. Military retirees eligible for Medicare will be able to obtain prescription drug coverage through TRICARE, the military's health-care system.

       



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